India vows to vigorously defend its case in tax dispute with Cairn
1 min read 08 Jul 2021, 01:09 PM ISTIndia’s dispute with Cairn is over an internal reorganisation of the company’s India business in 2006-07 prior to its initial public offering. The tax demand was raised invoking a 2012 change in the Income Tax Act that was retroactive
PremiumNEW DELHI: The Indian government has vowed to vigorously defend its case in the ongoing tax battle with British energy company Cairn Energy Plc., and take "appropriate legal remedies" on any asset freeze order secured by the company against India, a government official said.
The government’s assertion of its intent to defend the case comes after news reports said that Cairn has seized Indian state-owned properties in Paris.
“There have been news reports that Cairn Energy has seized state-owned property of Government of India in Paris. However, government of India has not received any notice, order or communication in this regard, from any French court. We are trying to ascertain the facts, and whenever such an order is received, Government of India will take appropriate legal remedies in consultation with its counsels," the official said.
The Financial Times reported on Thursday, quoting Cairn Energy and documents from a French court, that the company has seized India's state-owned properties in Paris.
The official said the Indian government had filed an application in The Hague Court of Appeal on 22 March to set aside the December 2020 international arbitral award secured by Cairn Energy in the tax dispute.
“Government of India will vigorously defend its case in ‘Set Aside’ proceedings at The Hague," said the reiterated.
The government had earlier said the international arbitration award of over $1.2 billion that Cairn Energy won in a dispute with India was highly flawed and that it wrongly backed an alleged tax avoidance scheme of the company.
According to the Indian government, the arbitration panel improperly exercised jurisdiction in a national tax matter.
An email sent to Cairn Energy Plc. on Thursday seeking comments remained unanswered till press time.
India’s dispute with Cairn is over an internal reorganisation of the company’s India business in 2006-07 prior to its initial public offering. The tax demand was raised invoking a 2012 change in the Income Tax Act that was retroactive.
